Ex-Finance Minister Warns Rasmalé Advance from Reserves Risks National Bankruptcy

Former Finance Minister Ibrahim Ameer warned that President Mohamed Muizzu's directive to use the Maldives Monetary Authority's reserves for an advance payment on the Rasmalé dredging project could bankrupt the nation. Speaking for the MDP Economic Committee, Ameer criticized the plan as illegal and imprudent, noting the funds would go to a private company. He questioned how Greater Malé Financial District Limited, a newly formed state-owned enterprise, could secure a US$300 million loan. The government changed financing strategy in July, instructing three state firms to raise loans totalling US$600 million and authorizing use of MMA reserves or the Indian swap facility. Ameer accused the MMA of enabling politically motivated decisions. As of end-May, usable reserves were US$217.9 million. The Rasmalé project, launched in December 2023, has progressed slowly with only a small portion of 1,100 hectares reclaimed.

Former Finance Minister Ibrahim Ameer warned that President Mohamed Muizzu's directive to use the Maldives Monetary Authority's reserves for an advance payment on the Rasmalé dredging project could bankrupt the nation. Speaking for the MDP Economic Committee, Ameer criticized the plan as illegal and imprudent, noting the funds would go to a private company. He questioned how Greater Malé Financial District Limited, a newly formed state-owned enterprise, could secure a US$300 million loan. The government changed financing strategy in July, instructing three state firms to raise loans totalling US$600 million and authorizing use of MMA reserves or the Indian swap facility. Ameer accused the MMA of enabling politically motivated decisions. As of end-May, usable reserves were US$217.9 million. The Rasmalé project, launched in December 2023, has progressed slowly with only a small portion of 1,100 hectares reclaimed.

Former Finance Minister Ibrahim Ameer warned that President Mohamed Muizzu's directive to use the Maldives Monetary Authority's reserves for an advance payment on the Rasmalé dredging project could bankrupt the nation. Speaking for the MDP Economic Committee, Ameer criticized the plan as illegal and imprudent, noting the funds would go to a private company. He questioned how Greater Malé Financial District Limited, a newly formed state-owned enterprise, could secure a US$300 million loan. The government changed financing strategy in July, instructing three state firms to raise loans totalling US$600 million and authorizing use of MMA reserves or the Indian swap facility. Ameer accused the MMA of enabling politically motivated decisions. As of end-May, usable reserves were US$217.9 million. The Rasmalé project, launched in December 2023, has progressed slowly with only a small portion of 1,100 hectares reclaimed.

This story involves 1 source and may affect public understanding of infrastructure / fiscal risk.